Natwest Accout Closed and 7 days notice for overdraft repy

[cityhunter]

Hello, I have been with natwest for 5 years. now they sent me a letter saying,

The Bank has carried out a review of your banking arrangements and has decided that it is now only prepared to offer you a linited banking service. with immediate effecr your account can only be used for the servicing of your loan account and the withdrawl in cash of any cleared balances. The banl is unwilling to enter into any further discussion with you rearding its decision and is unforunately not in a position to provide any references on your behalf

 

Please make arrangemets to repy your current account brrowing within 7 days from the date of this letter.

 

I have used my overdraft of £3500 out of £4000. I never gone over my overdraft limit, so there are no charges in my bank account from the date of the account open. my pay also going direct to that account. there is nothing worng in my account, but still they closed my account

 

now natwest wants me to repay it with in 7 days. I won't be able to do that at present. I can pay samll amouts every month.

 

Bank is sending me letters with Debt recovery action. I.e recovery agents will be instructed to collect them .

 

 

can any one give me some information about

 

1) how to pay small repayments to bank?

2) does it effect my credit record ?

3) recovery agents seize my assets?

 

Many thanks

[Movingon]

See if you can get an account with another bank with a large overdraft facility... it's a long shot but you could pay off this overdraft from that account. Or a loan maybe?

 

"Are not prepared to enter into further discussion with you regarding their decision"

 

WTF??!? What did you do?!

[Reznor]

Speak to your local Citizen Advice Beauro. They should be able to help.

 

Is the bank responding like this because you asked for your charges to be repaid?

[cityhunter]

Stone laughter,

 

Don't know!!!! there is nothing worng in my account , my pay also going direct to that account. No charges at all from the date of account open... nothing worng.... but natwest is not telling me reason for closing the account. they says its a business decision. ..............

[katesage]

I gather this action by the bank has been prompted by ongoing account problems rather than you starting action against them to recover illegal charges?

 

If so you should start the process we are all on in here which is to get our money back. which should solve a few probs for you.

 

Also once you start this process the account is officially 'in dispute' and they cannot report you to a credit reference agency and default you. (in theory!) 13.6 of the Banking Code) However they dont always play fair as you are finding.

 

As Stonelaughter rightly says try and get another account immediately, whilst this advances,your credit reference is going downhill and you need a basic account to move to.

 

There is another thread post on this forum today (cant remember name)all about this same dilemma. i'll find it and post it for you.

 

Most important of all spend the next couple of days on here reading the FAQs and the postings. you'll get loads of advice and support.

 

You could get all your charges back and get them off your back properly

 

good luck

Kate:)

[katesage]

B**gger! just seen your last post. No Charges!?????

WTF are they playing at?

You need to get a new account...........

 

good luck matey

K:)

[Guest Alison82]

Maybe it was a mistake? that is really strange

[katesage]

Just a thought,

 

give the Banking Ombudsman a call. Through their guidance you could launch an official complaint, disputing the circumstances of the account closure (effectively). That would put you into dispute and deter them from defaulting you to the Credit Reference Agency, if you can't pay off your overdraft.

They are being very harsh and you deserve an explanation.

 

Good luck

Kate

[BankFodder]

Well it is very mysterious.

You may any claim against the bank and they have no reason at all to terminate or very your contract in this way.

I am quite sure that the only way to deal with this is by force. This means that you must apply for an immediate injunction to prevent them from closing your account. You must do it on the basis that there is an implied term of a contract that they will apply their discretion reasonably in that they will not unreasonably close your account and that if they do grow your account they will give you reasonable notice and give you reasonable terms for the repayment of any debt.

The other thing that is on its way is a default notice. Once they did you notice to repay your overdraft if you are able to do it within the timescale which they set then they will default you and your name will be entered on the credit register and you will be unable to do anything about it until it is removed in six years time.

You have to decide immediately with you want to do something about it. I have no expectation that any approach or attempted dialogue or negotiation will do you any good at all. Once these people start moving they are like an ocean tanker. It takes days for the thing to stop or to turnaround.

If you decide to take some action, the first thing you should do is you should go to the template library get the section 10 notice and served on them suitably modified to match your circumstances.

You should then get the necessary claim form and applying for an injunction immediately and then immediately apply for an interim injunction and it may be that if you only have seven days, that you will have to apply for an interim injunction without notice as a matter of urgency.

If you really have not trouble the bank in anyway then I would expect that you will have the judges for sympathy and that you will be up to put the bank on their back foot

[Bookworm]

Ermmm.... Aren't they supposed to give 30 day's notice anyway according to the banking CoP?

[Don Quioxte]

Can you PM a copy of the letter that you received giving you notification of the account closure please.. I may be able to helpfurther - also can you clarify what if any correspondance you received prior to this demand letter - as, indeed I think it breaches the Banking Code and thus FSA regulations if they are demanding repayment within 28 dyads. Yes they can demand repayment (although BF has already made it clear that this is probably a breach of contract on their behalf),but where they do, as Bookworm alludes to - they must provide you with sufficient notice of termination or ammendment to contract or terms and conditions - this is usually 28 days.